(Editor’s note: World events in 2020 have significantly impacted lumber markets, which in turn affect the lumber-equipment industry. We received the following comments reflecting universal concerns in the lumber-equipment industry during the midst of the COVID-19 pandemic in the U.S. and after China lifted tariffs on lumber.)
Frances Cooper
Cooper Machine Co. Inc.
Wadley, GA
Most of our business is on the low grade/pallet and Softwood side, which has been strong. But we’re hearing from some of our grade customers that things are starting to improve and by adding optimization to an edger or gang, it’s easier to pay it off when you don’t have a person throwing away boards in the chipper.
We have found that the coronavirus has been affecting some of our vendors and their staff, and it’s taking longer to get some of our specialty parts. There are longer lead times and higher prices on some of the mechanical and electrical parts that we source, even with the OEM discounts we receive. We’ve also found it’s affecting shipping and it’s taking longer than usual to get parts out to customers, even through UPS sometimes. Patience is a virtue these days.
We were expecting that the coronavirus was going to be a negative event for customers and that there would be a downturn, but have found it has been the opposite. We have never been busier quoting, and we expect that to turn into sales. And it’s not just single machines, it’s a lot of new mills with automation to cut down on the number of people needed in the mill. It’s easier to pay off a new mill when you only need five or six people to run it.
Jeremy Howard
Nyle Dry Kilns
Brewer, ME
We were very fortunate to have had plenty of work already in the pipeline when the stay-at-home orders started to roll out. By changing our sales and marketing focuses, we were able to continue reaching customers and provide equipment to them. Sales have slowed down some, but ultimately the impact has been very little for Nyle.
We have had very optimistic conversations with our customers during the past three weeks. Sales are up and it seems as though lumber is moving again. Going into the lockdown, I think many of our customers were gearing up for a big year. While that might have been put on pause, I’m looking for the flood gates to really open up once things return to normal now that the Chinese tariffs seem to be in the past as well.
Paul Cleereman
Cleereman Industries
Newald, WI
We never really got a chance to see the impact of the lifting of tariffs because the coronavirus hit right around the same time that the tariffs were lifted.
The coronavirus has caused customers to cancel or postpone orders. With the travel restrictions that cities and states have imposed, it also has forced postponement of installation and start-up of new equipment.
Our customers are reporting that lumber markets are getting worse due to the coronavirus and some sawmills are scheduling mill shutdowns.
Sam Pope
USNR
Woodland, WA
How is the coronavirus affecting my customers? Some curtailments are starting to control the amount of lumber inventory that is starting to accumulate. We still need sawdust and chips for the pulp and paper industry; however, that is a byproduct produced from operating. Better stock up on your TP.
Our U.S. hardwood customers compete heavily in supply versus Chinese hardwood imports. Lifting the tariffs on Chinese imports squeezes U.S. manufacturers, reducing the amount of money available for them to spend on capital equipment reinvestments in their businesses. It would be more ideal for our U.S. suppliers if the federal government kept the tariffs in place and redistributed the tariff money back to producers. Then they could spend it on equipment reinvestments to boost efficiency and productivity, similar to how the Canadian Softwood Lumber Agreement works. At the end of that agreement, the U.S. and Canadian governments negotiate returns of the tariff money back to the Canadian government who redistributes it to their lumber producers, who then use it to purchase capital investments.
We are Millwide Worldwide; with operations in the U.S., Canada and Europe and all business is affected by the coronavirus. We are an essential U.S. business; however, trying to support customers during a time when the country is under a “stay at home” policy is a challenge. We do have some heroes in our industry that keep the system running.
Steve Hoagland
Pantron Automation, Inc.
Belmont, NC
Pantron Automation distributes sensors to many different industries, while my sales are directed toward the wood market. We sell throughout North America; the pandemic has slowed our sales down some.
Belmont is just south of Charlotte, which has shut down all but essential businesses so many people are staying at home there. As of the time of this writing, we are all still working and considered an essential workplace. The coronavirus has forced some changes in our business practices, though. We no longer have a staff meeting at a round table. We constantly clean the office, have a six-foot distance rule in place and do not visit in individual offices. We use Hangouts to communicate inside the office with each other. Delivery services and other visitors are not allowed in the building.
I usually visit eight sawmills a month and that has been called off, as have all customer visits. Instead, we are calling and sending e-mails to keep in touch with customers. Two of our trade shows have been cancelled.
Lee Stiles
A.W. Stiles Contractors Inc.
McMinnville, TN
Our business and inquiries quickly spiked once the Chinese tariffs were removed, but after the media began pushing fear of COVID-19, everything stopped. Inquiries, other than emergencies, practically came to a standstill. We put some projects on hold and postponed others due to the pandemic and customer requests. We’ve stayed busy and kept working to keep our customers operating. It appears new business has just been on hold.
Reviews from customers are mixed. Some are doing fine with exports, whereas domestic markets are sucking pond water. The overall state of the world economy, due to COVID-19, has everything screwed up–that’s the general consensus we hear from customers. However, some customers are capitalizing on the opportunity this current time has presented. Lumber is not a huge push so downtime at the kilns isn’t a killer right now. The other thing is metal markets are low. Some folks are investing now while material costs are low.
Kenzie Hand
Lucidyne Technologies Inc.
Corvallis, OR
We’ve had a couple of mills that have chosen to shut down because they want to protect their employees from the coronavirus. We’ve also had some mills that are having to reduce shifts on the West Coast because their lumber is just not getting sold. But besides that, it does seem like since lumber was declared essential, quite a few mills are still up and running.
We’re still supporting them, but we’re not doing any routine maintenance visits because non-essential people are not allowed into the mills. Those visits are being rescheduled.
Our few production people are going in and working as long as they can maintain a six-foot distance. Whoever can work from home is working from home.
Dan Mathews
SII Dry Kilns
Lexington, NC
We continue to see expansion and improved production desired in the Softwood industry more so than we do in the hardwood industry, even with the coronavirus. We have continued to bid work and do both manufacturing and construction for Softwood projects, which has helped sustain our business during this difficult time.
Due to the virus, SII was operating several aspects of our business with reduced office staffing. However, since we have been considered essential we are back to full staff. By utilizing technology to allow several employees to work remotely and asking salesmen to contact customers via phones and email versus face-to-face meetings, we have been able to keep busy. At the onset of the shutdown, we reduced plant personnel to insure that all employees could maintain proper distancing from each other while continuing to produce materials to attempt to meet pre-COVID-19 schedules. Today, we are back to full staff in our plant and are proud to say that we continue to keep all employees properly distanced from co-workers while meeting full production capacity for the plant. Our inside parts sales and controls departments are available to assist anyone with immediate problems given the importance of keeping our equipment running properly in supporting the lumber and pallet industries during these trying times.
Most of our customers seem to be operating at full or close to full capacity depending on the severity of the virus in their region. The same issues we face pertaining to safe distancing from co-workers are also a concern for customers. Many of these customers are having difficulty meeting the increased demand for pallets and crating materials, which are vital to the medical supply chain.
Dan Zeamer
Salem Equipment
Vancouver, WA
We’ve been experiencing supplier delays because of COVID-19. Our customers have stopped all capital projects and sent contractors home. Most mills are only allowing visits by appointment only and very few mills are even setting appointments to meet.
